A Record 137 Million Microloans Issued in 2010
In the last year, microloans have been issued to more than 137.5 million of the world’s poorest families, affecting 687 million family members. These are the statistics found in this year’s State of the Microcredit Summit Campaign Report. While acknowledging challenges, the report confirms that microcredit has the ability to change lives on a huge scale.
In light of the record-breaking numbers, the campaign’s aim, “to ensure that 175 million of the world’s poorest families, especially women of those families, are receiving credits for self-employment and other financial and business services”, seems well within reach.
The report also discusses issues affecting microcredit institutions and clients. Authors Jan Maes and Larry Reed write:
“This has been a challenging year for microfinance… over the last year, we have been shaken as we watched rapid growth in a major market, India, turn into a major collapse in one portion of that market, Andhra Pradesh, which has brought real harm to clients we sought to help.”
This has highlighted a number of important issues, including interest rates and the possibility of over-indebtedness. If these issues are not properly considered, it can result in unmanageable situations for borrowers.
Microcredit has transformed the lives of millions of the world’s poorest people, and has the potential to continue doing so. At Deki, we are dedicated to providing a responsible service that has a positive impact in the long term. As part of our commitment to serving our entrepreneurs as best we can, we have signed up to the Smart Campaign, pledging to follow a set of core principles for their treatment. These include avoidance of over-indebtedness and responsible pricing. The principles represent a minimum standard, and will guide as we work to facilitate a manageable microloan for every Deki entrepreneur.
Join us to offer a responsible microloan to an entrepreneur in the developing world and change a family’s life.